Platinum is bearing the brunt of China woes.
The metal tumbled to a six-year low and posted the biggest drop in two years after the Asian Development Bank reduced its growth forecasts for China and said the country’s declining appetite for energy, metals and other raw materials would hurt commodity-focused export economies. The Bloomberg Commodity Index slipped 1.3 percent, with 20 of 22 components in the gauge declining.
“The path of least resistance is down,” Phil Streible, a senior market strategist at RJO Futures in Chicago, said in a telephone interview. “Any fresh longs that went in last week are probably forced back in the sidelines. Concerns about China are bringing down all these markets.”
Platinum futures for October delivery tumbled 3.7 percent to settle at $937.50 an ounce at 1:19 p.m. on the New York Mercantile Exchange, the biggest drop since June 2013. The metal touched $935.20, the lowest since January 2009. Trading was more than double the 100-day average. Palladium also fell on the Nymex.
On the Comex in New York, gold futures for December delivery slipped 0.7 percent to $1,124.80 an ounce, while silver declined.
“All the industrial commodities are getting sold off,” Carole Ferguson, an analyst at brokerage SP Angel Corporate Finance in London, said by phone. “Gold should hold up better than the rest, particularly if its safe-haven qualities start to re-emerge.”
Mining shares slumped. Harmony Gold Mining Co., a South African producer, retreated as much as 14 percent. Glencore fell as much as 16 percent to a record low of 99.59 pence in London trading. Barrick Gold Corp. slid 7.3 percent in Toronto.
Investors withdrew funds from exchange-traded products backed by bullion, with total holdings declining 0.2 percent to 1,513.9 metric tons, data compiled by Bloomberg as of Monday showed. While this year has seen a steady reduction in gold assets, the past week has been little changed.
“Confused and waiting is probably a good description of where the gold market is at the moment,” David Jollie, head of research at Mitsui & Co. Precious Metals Inc. in London, said by phone. “No one but the Fed knows why they didn’t move rates, and that’s leaving investors uncertain.”
